Comments on: Reader Story: The Real Cost of Workhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/
Common sense advice on money saving tips, how to get out of debt, high interest savings accounts, cd rates, money market accounts, mortgage rates, money management and more.Tue, 31 Mar 2015 19:39:16 +0000hourly1http://wordpress.org/?v=3.0.1By: How do you do SEO?http://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-2/#comment-3213492
How do you do SEO?Wed, 09 Jan 2013 14:26:26 +0000http://www.getrichslowly.org/blog/?p=134602#comment-3213492That is a very good tip particularly to those fresh to the blogosphere. Short but very precise information… Appreciate your sharing this one. A must read article!That is a very good tip particularly to those fresh to the blogosphere. Short but very precise information… Appreciate your sharing this one. A must read article!

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]]>By: Tracyhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-2/#comment-2795922
TracyThu, 14 Jun 2012 14:11:57 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2795922Yeah, I wasn't planning on picking on individual states, but definitely there are a few where benefits are out of control. I just think that states like California get used so often as illustration, that people assume all civil service employees have deals like that. I totally support reforms to Federal pension contributions...I think increasing contribution levels for new hires (which is now law) was the right thing, and I also support Obama's proposal to do 1-year/1% step increases to pension contribution for existing employees, despite the fact that it will result in a 5K 'bite' to our take-home pay, and despite the fact that it is a 'renegotiation' of my husband's contract when he only has about 15 years to retirement. I definitely think reform is needed in a lot of civil service programs.Yeah, I wasn’t planning on picking on individual states, but definitely there are a few where benefits are out of control. I just think that states like California get used so often as illustration, that people assume all civil service employees have deals like that. I totally support reforms to Federal pension contributions…I think increasing contribution levels for new hires (which is now law) was the right thing, and I also support Obama’s proposal to do 1-year/1% step increases to pension contribution for existing employees, despite the fact that it will result in a 5K ‘bite’ to our take-home pay, and despite the fact that it is a ‘renegotiation’ of my husband’s contract when he only has about 15 years to retirement. I definitely think reform is needed in a lot of civil service programs.

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]]>By: Robert Marchesehttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-2/#comment-2794722
Robert MarcheseWed, 13 Jun 2012 19:53:23 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2794722California union employees, such as teachers, firefighters, police, etc, are able to retire with up 90 percent of their paycheck at age 50! In Los Angeles it was reported that over 80 percent of the police department were retiring claiming disabilities due to their job. It turns out that if they claimed disability they got 50 percent of their retirement pay un-taxed for the rest of their life, so most of them "wink wink" were finding themselves with disabilities upon or before retirement. This is rampant union abuse in my estimattion. Also these guys after 50 could get another union job and "double-dip". This unfunded liability is bankrupting California.California union employees, such as teachers, firefighters, police, etc, are able to retire with up 90 percent of their paycheck at age 50! In Los Angeles it was reported that over 80 percent of the police department were retiring claiming disabilities due to their job. It turns out that if they claimed disability they got 50 percent of their retirement pay un-taxed for the rest of their life, so most of them “wink wink” were finding themselves with disabilities upon or before retirement. This is rampant union abuse in my estimattion. Also these guys after 50 could get another union job and “double-dip”. This unfunded liability is bankrupting California.

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]]>By: Tracyhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-2/#comment-2770392
TracyTue, 05 Jun 2012 23:14:03 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2770392I so much appreciate this guest shedding light on the realities of public service employment. Of course salaries and benefits vary from state to state, and there are certainly some very cushy positions out there, but it is not a given. My husband is a fed, and while we are extremely lucky that he does work (biological research) that he loves and that he has access to benefits at all, we are always amazed at the assumptions people make about federal salaries and benefits. My husband is 50 now, and is making (in our opinion) good money, but not the triple digits I think people tend to imagine for feds. Also, people should be aware that qualifications for professional civil service postions are often steep (in order to get his position, my husband needed four specialized science degrees (B.S., M.Sci, Ph.D.,2-year post doc) and his starting salary was still in the low 40Ks. Not that we're complaining!
Incidentally, the assumptions people make about Congress are even crazier. As much as it pains me to defend their often worthless butts, have the same benefits as any other fed...they DO NOT have super sekrit speshul gold-plated bennies such as free health care and salary for life.I so much appreciate this guest shedding light on the realities of public service employment. Of course salaries and benefits vary from state to state, and there are certainly some very cushy positions out there, but it is not a given. My husband is a fed, and while we are extremely lucky that he does work (biological research) that he loves and that he has access to benefits at all, we are always amazed at the assumptions people make about federal salaries and benefits. My husband is 50 now, and is making (in our opinion) good money, but not the triple digits I think people tend to imagine for feds. Also, people should be aware that qualifications for professional civil service postions are often steep (in order to get his position, my husband needed four specialized science degrees (B.S., M.Sci, Ph.D.,2-year post doc) and his starting salary was still in the low 40Ks. Not that we’re complaining!

Incidentally, the assumptions people make about Congress are even crazier. As much as it pains me to defend their often worthless butts, have the same benefits as any other fed…they DO NOT have super sekrit speshul gold-plated bennies such as free health care and salary for life.

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]]>By: amberhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2769342
amberTue, 05 Jun 2012 17:14:05 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2769342Robin, you rock and I'm glad you do what you do. I hate that we live in a country where the pay for the most meaningful jobs is so low.Robin, you rock and I’m glad you do what you do. I hate that we live in a country where the pay for the most meaningful jobs is so low.

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]]>By: Chasehttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-2/#comment-2769122
ChaseTue, 05 Jun 2012 15:46:18 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2769122Okay Dave Ramsey.
It sounds to me like a lot of the public-sector commenters really enjoy their work. They deal with the low compensation because of the love for their work.
I doubt there is much of a private sector market for crime analyst, or high-school teacher. These jobs exist because, for the most part, we as a society find them necessary but the private sector doesn't want to invest in them because they don't provide shorter-term profits (there's no monetary gain in capturing child pornographers, for example).
Personally, I would only go into the public sector to be a professor or researcher at a national lab (I'm an engineering graduate student). Otherwise, the compensation is so much better in the private sector that it's not work it.
I also like having control over my money, so I don't think I'd like being in a union where I'm required to contribute money into a pension I have no control over. Not to mention not being able to negotiate directly with my employer.Okay Dave Ramsey.

It sounds to me like a lot of the public-sector commenters really enjoy their work. They deal with the low compensation because of the love for their work.

I doubt there is much of a private sector market for crime analyst, or high-school teacher. These jobs exist because, for the most part, we as a society find them necessary but the private sector doesn’t want to invest in them because they don’t provide shorter-term profits (there’s no monetary gain in capturing child pornographers, for example).

Personally, I would only go into the public sector to be a professor or researcher at a national lab (I’m an engineering graduate student). Otherwise, the compensation is so much better in the private sector that it’s not work it.

I also like having control over my money, so I don’t think I’d like being in a union where I’m required to contribute money into a pension I have no control over. Not to mention not being able to negotiate directly with my employer.

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]]>By: FrugalSpenderhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-2/#comment-2769102
FrugalSpenderTue, 05 Jun 2012 15:40:22 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2769102Excellent article Robin! Can't tell you man how much I relate to your situation. I make exactly same as you but always use to feel bad about how crapy my income was - not after reading the inspiring article of yours.
I took a masters degree in architecture but with the economy being down past few years my career has seen only the negative side of it. I was told that a college degree will give me an cutting edge and I don't deny that except that I have learnt that it has to be the right college degree. My friends from other field make 2-3 times more than me working same 8-5. Your article talks about how someone can still be thankful about what they have got without worrying about trivial things. Its not how much you make but its about how much you save that matters at the end of the day.
I have learnt some good things in past few months after reading blogs like these and have become responsible spender. My current job may not be high paying but I can see I have a potential of being a partner at this company down the line if I stay long enough. Also, I haven't gotten a raise in past four years but its better to have a salary than not having it at all.
So for everyone out there who are comparing salaries, let me tell ya its just a "number" and things are that really matter are independent of that number.Excellent article Robin! Can’t tell you man how much I relate to your situation. I make exactly same as you but always use to feel bad about how crapy my income was – not after reading the inspiring article of yours.

I took a masters degree in architecture but with the economy being down past few years my career has seen only the negative side of it. I was told that a college degree will give me an cutting edge and I don’t deny that except that I have learnt that it has to be the right college degree. My friends from other field make 2-3 times more than me working same 8-5. Your article talks about how someone can still be thankful about what they have got without worrying about trivial things. Its not how much you make but its about how much you save that matters at the end of the day.

I have learnt some good things in past few months after reading blogs like these and have become responsible spender. My current job may not be high paying but I can see I have a potential of being a partner at this company down the line if I stay long enough. Also, I haven’t gotten a raise in past four years but its better to have a salary than not having it at all.

So for everyone out there who are comparing salaries, let me tell ya its just a “number” and things are that really matter are independent of that number.

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]]>By: fearlesshttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-2/#comment-2768852
fearlessTue, 05 Jun 2012 14:49:41 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2768852Sorry but from a lot of the fellow union employee members making all the comments please, stop living in fear and if you are not happy and feel you can get higher compensation please leave your unionized job and start your own company or work in the private sector. I see and hear a lot of sheeple here that are so scared of their shadow. You have to wonder why city/state/fed orgs really just stick with the status quo and are the most inept as the unions have made that so.Sorry but from a lot of the fellow union employee members making all the comments please, stop living in fear and if you are not happy and feel you can get higher compensation please leave your unionized job and start your own company or work in the private sector. I see and hear a lot of sheeple here that are so scared of their shadow. You have to wonder why city/state/fed orgs really just stick with the status quo and are the most inept as the unions have made that so.

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]]>By: Krishnahttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2768652
KrishnaTue, 05 Jun 2012 13:44:41 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2768652Dang Robin- Thats rough...no other way to put it. Kudos to you for going through it for the greater good.Dang Robin- Thats rough…no other way to put it. Kudos to you for going through it for the greater good.

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]]>By: Stephenhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-2/#comment-2768232
StephenTue, 05 Jun 2012 11:33:50 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2768232I work in the public sector in an EU country. I know what Robin means when she talks about pensions. We have similar talk of "gold-plated pensions" over here. While I got vested in my pension after two years of service, I will only receive a full pension of half my final salary after 40 years of service. Since I joined too late (after obtaining a PhD) to accrue the full entitlement before the compulsory retirement age of 65, I am now buying back those missing years of service.
I also contribute mandatorily to the normal state pension system (akin to US Social Security). I'd say about 20% of my income each month goes solely to my pension, not counting the state pension contribution. Health insurance, disability insurance and critical illness insurance are voluntary (but the public health system in this country is too bad to consider living without private health insurance), however, my union has brokered some good deals with private providers on these.
Anyway, long story short, while I serve in a judicial function and am fortunate to make considerabely more than Robin (about 97k in USD), I take less than half of that home as net pay (app. 43k in USD).
What I find shocking is that the state in Robin's case has the right to re-negotiate her contract every four years. That is not possible here. A new public service employment contract applies only to those who enter employment after it is agreed. Everyone else is entitled to stay on their old contract, under the legal doctrine of "legitimate expectation".I work in the public sector in an EU country. I know what Robin means when she talks about pensions. We have similar talk of “gold-plated pensions” over here. While I got vested in my pension after two years of service, I will only receive a full pension of half my final salary after 40 years of service. Since I joined too late (after obtaining a PhD) to accrue the full entitlement before the compulsory retirement age of 65, I am now buying back those missing years of service.

I also contribute mandatorily to the normal state pension system (akin to US Social Security). I’d say about 20% of my income each month goes solely to my pension, not counting the state pension contribution. Health insurance, disability insurance and critical illness insurance are voluntary (but the public health system in this country is too bad to consider living without private health insurance), however, my union has brokered some good deals with private providers on these.

Anyway, long story short, while I serve in a judicial function and am fortunate to make considerabely more than Robin (about 97k in USD), I take less than half of that home as net pay (app. 43k in USD).

What I find shocking is that the state in Robin’s case has the right to re-negotiate her contract every four years. That is not possible here. A new public service employment contract applies only to those who enter employment after it is agreed. Everyone else is entitled to stay on their old contract, under the legal doctrine of “legitimate expectation”.

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]]>By: Nickyhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-2/#comment-2766852
NickyTue, 05 Jun 2012 01:50:03 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2766852Robin, I ust wanted to thank you for sharing the details of your situation. When most people don't talk about the specifics of their money, it is really interesting to hear yours.Robin, I ust wanted to thank you for sharing the details of your situation. When most people don’t talk about the specifics of their money, it is really interesting to hear yours.

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]]>By: Robinhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-2/#comment-2766742
RobinTue, 05 Jun 2012 00:42:37 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2766742Kathleen I love her too! It's funny because before that show no one had any idea what my job was when I tried to explain it. I wish I had her unique style. I'm a much more conservative dresser.
It's a great job. I can honestly say that I'm doing exactly what I was meant to do.Kathleen I love her too! It’s funny because before that show no one had any idea what my job was when I tried to explain it. I wish I had her unique style. I’m a much more conservative dresser.

It’s a great job. I can honestly say that I’m doing exactly what I was meant to do.

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]]>By: Robinhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2766722
RobinTue, 05 Jun 2012 00:38:47 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2766722Krishna, our overtime budget has been completely eliminated and I have not had 1 hour of overtime in 4+ years. If I end up working late it is traded for an hour or two somewhere along the line when I have a doctor's appointment on need a long lunch break (I am also not paid for my lunch hour). Basically overtime hours are volunteering.Krishna, our overtime budget has been completely eliminated and I have not had 1 hour of overtime in 4+ years. If I end up working late it is traded for an hour or two somewhere along the line when I have a doctor’s appointment on need a long lunch break (I am also not paid for my lunch hour). Basically overtime hours are volunteering.

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]]>By: Robinhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2766712
RobinTue, 05 Jun 2012 00:27:46 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2766712Yes, I've looked into the law enforcement forgiveness and I will get to $0 2 years before I'm eligible. Also, I borrowed that money, I owe it in full. I don't believe that it's right to take out a loan and not pay back what you owe. It's just not my nature.Yes, I’ve looked into the law enforcement forgiveness and I will get to $0 2 years before I’m eligible. Also, I borrowed that money, I owe it in full. I don’t believe that it’s right to take out a loan and not pay back what you owe. It’s just not my nature.

]]>By: A-Lhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2766572
A-LMon, 04 Jun 2012 23:39:04 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2766572Have you looked into any loan forgiveness options for people who work in the public interest?Have you looked into any loan forgiveness options for people who work in the public interest?

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]]>By: chacha1http://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2766512
chacha1Mon, 04 Jun 2012 23:15:32 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2766512IMO $38K at age 30 with a master's degree is actually not bad. It's the rest of the situation that kind of sucks.
At 30 with a master's degree I was making over $50K as a legal assistant. Robin could undoubtedly make a ton more money elsewhere.
But 30 is ... very young. This is no longer 1930 when the average 30-yr-old woman already had had six kids, three of whom survived, and had another 15 years to live. Robin has another 30 to 40 years of working life ... as long as she can manage the stress.IMO $38K at age 30 with a master’s degree is actually not bad. It’s the rest of the situation that kind of sucks.

At 30 with a master’s degree I was making over $50K as a legal assistant. Robin could undoubtedly make a ton more money elsewhere.

But 30 is … very young. This is no longer 1930 when the average 30-yr-old woman already had had six kids, three of whom survived, and had another 15 years to live. Robin has another 30 to 40 years of working life … as long as she can manage the stress.

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]]>By: csdxhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2766492
csdxMon, 04 Jun 2012 23:03:07 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2766492Hmm felt like running the numbers, the short of it is if you invested 11% of your salary for 25 years you might expect to end up with about $12k in usable retirement income or roughly 33% of your salary. (Assumptions: Invest 11% of $38k/yr, 8% annual return, 4% safe withdrawal rate in retirement).
Generally the 50% pension would be on par with an employer who's offering a ~6% match to 401k contributions (which is a fairly generous match). Of course in return someone with a 401k generally has a quicker vesting schedule (some even instant), and has access to their full nest egg, though this can be good or bad depending on their spending habits.
Interestingly the 10year/20% offer is just about exactly equivalent to contriubting money for 10 years then letting it grow for 15 more. So same as a 0% employer match.Hmm felt like running the numbers, the short of it is if you invested 11% of your salary for 25 years you might expect to end up with about $12k in usable retirement income or roughly 33% of your salary. (Assumptions: Invest 11% of $38k/yr, 8% annual return, 4% safe withdrawal rate in retirement).

Generally the 50% pension would be on par with an employer who’s offering a ~6% match to 401k contributions (which is a fairly generous match). Of course in return someone with a 401k generally has a quicker vesting schedule (some even instant), and has access to their full nest egg, though this can be good or bad depending on their spending habits.

Interestingly the 10year/20% offer is just about exactly equivalent to contriubting money for 10 years then letting it grow for 15 more. So same as a 0% employer match.

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]]>By: Krishnahttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2766232
KrishnaMon, 04 Jun 2012 21:03:51 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2766232What about overtime? Don't you get paid that for every hour over 40?What about overtime? Don’t you get paid that for every hour over 40?

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]]>By: Jennhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2766152
JennMon, 04 Jun 2012 20:45:55 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2766152Thoroughly enjoyed reading this story. It looks like you have looked at the cost-benefit analysis of your job in more than just a financial way, which is something we should all consider. The only recommendation I would make is to look into seeing if you can increase your income – maybe you can do some freelance data analysis or the like to be able to save some money, especially for an emergency fund. Thanks for the great post.Thoroughly enjoyed reading this story. It looks like you have looked at the cost-benefit analysis of your job in more than just a financial way, which is something we should all consider. The only recommendation I would make is to look into seeing if you can increase your income – maybe you can do some freelance data analysis or the like to be able to save some money, especially for an emergency fund. Thanks for the great post.

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]]>By: Geri Rogershttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2766052
Geri RogersMon, 04 Jun 2012 20:15:15 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2766052I find most of the GRS blog posts informative, but this one was downright moving. Perhaps because my own profession is a calling. Going to work every day at a job you love is beyond price.I find most of the GRS blog posts informative, but this one was downright moving. Perhaps because my own profession is a calling. Going to work every day at a job you love is beyond price.

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]]>By: Raehttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2765902
RaeMon, 04 Jun 2012 19:59:46 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2765902It depends. A master's degree is a prerequisite for getting certain public sector jobs regardless of pay (for example, social worker). In these jobs a master's is "worth it" in the sense that you couldn't do the job without it. Whether you want to pursue this type of path depends on how you weight job satisfaction vs pay and whether you are able to survive on a low salary. The general rule of thumb for academic master's degress (in the sciences and the humanities) is that if someone isn't paying for it, you shouldn't get the degree, because if you're not good enough to get funding you're not good enough to be successful in the field. The exceptions are law school and med school, which you almost always have to pay for. Law school you shouldn't attend in this job market, but if you feel the need to take the risk, you need to be at a top 20 school or a premier regional university in the region you want to work in. Med school, it's probably worth it and you will probably be able pay off the debt, although it might take longer than you expect even in a high-paying speciality (don't forget the years of residency!). The usefulness of MBA's is grossly exaggerated and should only be done if it is a certainty to open doors in your field (for example you encounter many job postings requiring or strongly preferring MBAs) or if someone else (your employer, a scholarship) is paying for it.It depends. A master’s degree is a prerequisite for getting certain public sector jobs regardless of pay (for example, social worker). In these jobs a master’s is “worth it” in the sense that you couldn’t do the job without it. Whether you want to pursue this type of path depends on how you weight job satisfaction vs pay and whether you are able to survive on a low salary. The general rule of thumb for academic master’s degress (in the sciences and the humanities) is that if someone isn’t paying for it, you shouldn’t get the degree, because if you’re not good enough to get funding you’re not good enough to be successful in the field. The exceptions are law school and med school, which you almost always have to pay for. Law school you shouldn’t attend in this job market, but if you feel the need to take the risk, you need to be at a top 20 school or a premier regional university in the region you want to work in. Med school, it’s probably worth it and you will probably be able pay off the debt, although it might take longer than you expect even in a high-paying speciality (don’t forget the years of residency!). The usefulness of MBA’s is grossly exaggerated and should only be done if it is a certainty to open doors in your field (for example you encounter many job postings requiring or strongly preferring MBAs) or if someone else (your employer, a scholarship) is paying for it.

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]]>By: jimhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2765802
jimMon, 04 Jun 2012 19:17:13 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2765802Pensions vary a lot. Most do require the employees to pay in a contribution. Most pensions have also had benefits cut over the years and are not as generous as they used to be. A lot of government employees don't participate in social security and that is a major difference. The pension itself doesn't negate social security, its up to the government if they do or don't want to do social security. So it just depends on the government or agency. Robins pension is about 2% x years worked and pensions vary from 1% to 2.5%. Employee contributions vary from 0% to 12%.
Robin pays 10% towards that pension and no social security. If she works 40 years she could probably retire with a 80% of her salary. Thats good.
If Robin worked at my company she would have social security cut out at 6.2%. My employer would then put 6.2% into social security and 6% into our retirement plan. If Robin put 3.8% into the retirement plan then that would be 9.8% total. Between the retirement plan and social security you'd end up with approximately 75% of your working income at full retirement age. The social security would be worth more than Robins pension dollar for dollar since it has a cost of living increase.
Robins pension with 10% contribution is about equivalent to my social security taxes and 6% employer cash benefit more or less.Pensions vary a lot. Most do require the employees to pay in a contribution. Most pensions have also had benefits cut over the years and are not as generous as they used to be. A lot of government employees don’t participate in social security and that is a major difference. The pension itself doesn’t negate social security, its up to the government if they do or don’t want to do social security. So it just depends on the government or agency. Robins pension is about 2% x years worked and pensions vary from 1% to 2.5%. Employee contributions vary from 0% to 12%.

Robin pays 10% towards that pension and no social security. If she works 40 years she could probably retire with a 80% of her salary. Thats good.

If Robin worked at my company she would have social security cut out at 6.2%. My employer would then put 6.2% into social security and 6% into our retirement plan. If Robin put 3.8% into the retirement plan then that would be 9.8% total. Between the retirement plan and social security you’d end up with approximately 75% of your working income at full retirement age. The social security would be worth more than Robins pension dollar for dollar since it has a cost of living increase.

Robins pension with 10% contribution is about equivalent to my social security taxes and 6% employer cash benefit more or less.

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]]>By: Jeniferhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2765292
JeniferMon, 04 Jun 2012 17:00:54 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2765292That is one way to get a raise... LOL
Seriously, Thank you for your candor!That is one way to get a raise… LOL

Seriously, Thank you for your candor!

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]]>By: Kristin Shttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2765192
Kristin SMon, 04 Jun 2012 16:31:11 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2765192While I understand what you are saying about being loan free and financially independent by 30 (I wish). I wanted to mention that the author got her Master's degree which would have added on to any bachelor degree debt. She didn't say when she got her master's but if it was only a few years ago, then she's doing a great job paying it down and she would still have that debt at 30...While I understand what you are saying about being loan free and financially independent by 30 (I wish). I wanted to mention that the author got her Master’s degree which would have added on to any bachelor degree debt. She didn’t say when she got her master’s but if it was only a few years ago, then she’s doing a great job paying it down and she would still have that debt at 30…

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]]>By: peterxyzhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2765112
peterxyzMon, 04 Jun 2012 16:10:17 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2765112"Unless you die in a work-related incident, your pension is not passed on to a family member, so if you die a year after you retire your pension is essentially void."
When you get to near retirement, look up the rules - in some schemes, you can sacrifice a small amount of your pension to provide a pension for your spouse. In my father's case a 10% reduction in his annual pension provided for a 50% survivor pension to my mother (which thankfully they haven't needed).
Your scheme may not allow it, and the math will vary, but it is worth investigating.“Unless you die in a work-related incident, your pension is not passed on to a family member, so if you die a year after you retire your pension is essentially void.”

When you get to near retirement, look up the rules – in some schemes, you can sacrifice a small amount of your pension to provide a pension for your spouse. In my father’s case a 10% reduction in his annual pension provided for a 50% survivor pension to my mother (which thankfully they haven’t needed).

Your scheme may not allow it, and the math will vary, but it is worth investigating.

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]]>By: Ramblin' Ma'amhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2765012
Ramblin' Ma'amMon, 04 Jun 2012 15:46:27 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2765012Wow! I started out reading this article and thinking, "$38K, that's decent for a single person." (It's a few thousand more than what I make.) But I was very surprised by how steep your deductions are. Thanks for showing us what a typical public sector worker makes.Wow! I started out reading this article and thinking, “$38K, that’s decent for a single person.” (It’s a few thousand more than what I make.) But I was very surprised by how steep your deductions are. Thanks for showing us what a typical public sector worker makes.

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]]>By: JMhttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2764972
JMMon, 04 Jun 2012 15:32:53 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2764972My husband is in law enforcement in Los Angeles. He contributes 2% of his salary for his pension. No, he cannot opt out of contribution. But 2% is nothing! When he retires from his $120,000 job, he will collect a 90% pension. And he will get his medical paid for in retirement too.
Although I will benefit from this, I feel bad because this is why California is in the mess it is. The retirement benefits that this state carries for its civil servants and teachers is unbelievable.My husband is in law enforcement in Los Angeles. He contributes 2% of his salary for his pension. No, he cannot opt out of contribution. But 2% is nothing! When he retires from his $120,000 job, he will collect a 90% pension. And he will get his medical paid for in retirement too.

Although I will benefit from this, I feel bad because this is why California is in the mess it is. The retirement benefits that this state carries for its civil servants and teachers is unbelievable.

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]]>By: Danahttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2764872
DanaMon, 04 Jun 2012 14:54:40 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2764872This is info that the people of Wisconsin should know before they vote. Thank you for explaining pensions so clearly. Very eye-opening.This is info that the people of Wisconsin should know before they vote. Thank you for explaining pensions so clearly. Very eye-opening.

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]]>By: getagriphttp://www.getrichslowly.org/blog/2012/06/03/reader-story-the-real-cost-of-work/comment-page-1/#comment-2764462
getagripMon, 04 Jun 2012 13:11:36 +0000http://www.getrichslowly.org/blog/?p=134602#comment-2764462What I really like it twenty plus years ago when I was looking for a job the companies I interviewed with brought out the government benefits as the bottom of the barrel with respect to benefits and demonstrated how they were much better.
Now the public is being sold that the bottom of the barrel is the gold standard and we all need to shoulder a bigger burden.
Funny how that worked out to the companies favor.What I really like it twenty plus years ago when I was looking for a job the companies I interviewed with brought out the government benefits as the bottom of the barrel with respect to benefits and demonstrated how they were much better.

Now the public is being sold that the bottom of the barrel is the gold standard and we all need to shoulder a bigger burden.